Two Japan firms sign deal with LRMC for operation and maintenance improvement of LRT-1
Two Japanese companies and the Light Rail Manila Corp. signed a memorandum of agreement to provide technical assistance for the operation and maintenance improvement project of the 39-year-old Light Rail Transit Line 1 (LRT-1), Metro Manila’s oldest railway system.
With the signing of the MOU, this means that Japan is supporting the entire modernization of the railway system of Metro Manila.
Hankyu Corp., Sumitomo Corp., and the LRMC on Wednesday signed the MOU. The LRT-1 line runs 19.7 kilometers.
“By this direct involvement in the operation and maintenance, which was the last missing piece of our cooperation in the field of railway, now JICA comprehensively covers the entire aspects of railway modernization and provides full ‘fast and sure’ support to realize a safe, reliable, and comfortable railway for the Filipino people,” JICA Senior Vice President Mikio Hataeda said in his opening remarks.
“We expect that this investment will catalyze further investment from Japanese companies to expand their high-quality infrastructure business in the Philippines,” he added.
Hataeda said he believes the project will help the country and “promote better transportation through alleviating the traffic and congestion of Metro Manila and reducing GHG (greenhouse gas) emissions by improving the public transportation network”.
LRT-1 spokesperson Jackie Gorospe said that the signing of the MOU meant that Japan was giving support to all railways.
“They are providing support but not necessarily handling all ” she told The Daily Manila Shimbun in a Viber message.
The Japan International Cooperation Agency (JICA) will invest in the LRT-1’s operations and maintenance.
JICA provides financial aid to infrastructure flagship projects including the Metro Manila Subway, North-South Commuter Railway, Metro Rail Transit Line 3 (MRT-3), LRT-1, and LRT-2.
Together with Hankyu Corp., a Japanese railway operator, JICA has acquired shares of the Light Rail Manila Corporation (LRMC) from Sumitomo Corp., which supports LRMC’s purchase of spare parts.
Through this MOU, the LRMC will receive technical aid from Hankyu Corp.in terms of operations and maintenance; non-farebox revenue, land value capturing, and urban development planning, among others.
The LRT-1 Operation and Maintenance Improvement Project is JICA’s and Hankyu’s first overseas investment in railways.
Japanese Ambassador to the Philippines Kazuya Endo said improvements in urban transportation will “not only provide the Filipino people more convenience in their everyday life but also raise the reputation of the Philippines’ capital, Manila, in the international community and significantly contribute to the overall economic development of the Philippines.”
He also vowed that the Japanese government would continue to support the development of the Philippine railway network through JICA and private companies.
Transportation Secretary Jaime Bautista said this project will help persuade more Japanese businesses to invest in the country’s transport projects.
“While JICA has traditionally extended financial support, this time, JICA will also provide technical assistance through Hankyu and LRMC, help evaluate LRT-1's operations, and improves its processes and personnel training. This added layer of assistance will be most helpful, especially at this time when the Cavite extension is about to start partial operations very soon,” he added.
The LRT-1 Cavite Extension project will add around 11.7 kilometers to the existing 20.7-kilometer line and is expected to have partial operations in October. Jaspearl Tan/DMS
